The Exponential Moving Average (EMA) Entry Settings allow you to control when your bot enters a trade based on whether the asset is trading above or below a chosen EMA line. This is especially useful for short-term or intraday trend strategies.
What Is the EMA?
An Exponential Moving Average (EMA) is a type of moving average that places more weight on recent price data, making it more responsive to short-term market movements.
Unlike the SMA (which is based on the daily chart), the EMA in the Auto Trader is always calculated on the 1-minute chart.
This means the periods are shorter (e.g., 10-minute EMA, 12-minute EMA, 20-minute EMA) and are better suited for faster-moving strategies.
How the Settings Work
When creating or editing an Auto Trader, you’ll find the EMA Entry Rule under Entry Settings.
Period: The number of minutes used in the calculation (e.g., 10, 12, 20).
Direction: Whether the bot should only enter if the asset price is above or below the selected EMA.
⚠ EMA Entry Settings are available for ETFs, Stocks, and Index Options. They do not apply to futures options. If used with a futures options Auto Trader, the EMA is based on SPY instead of the futures contract.
Example
Intraday Trend Strategy
You want trades to follow short-term momentum.
Set Period = 12 and Direction = Above.
The bot will only enter trades if the asset is trading above the 12-minute EMA on the 1-minute chart.
Reversal Strategy
You want to trade when prices dip below a short-term EMA.
Set Period = 20 and Direction = Below.
The bot will only enter trades if the asset is below the 20-minute EMA.
Why This Matters
EMA reacts faster to price changes than SMA.
Perfect for intraday traders who want strategies tied to short-term momentum.
Helps filter trades so bots only fire in the right short-term trend conditions.
Summary
EMA Entry Rules use the 1-minute chart for calculation.
Periods are shorter (e.g., 10, 12, 20 minutes).
You can filter trades by above or below the EMA.
Works with ETFs, Stocks, and Index Options (SPY is used for futures).
Best for short-term and intraday strategies.